Green Forum • 18 September, 2024 at 8:54 PM
The European Investment Bank (EIB) and BNZ have signed a €166 million loan to support the deployment of 17 solar photovoltaic plants across Spain, Italy, and Portugal.
This is the first tranche of a €500 million loan approved by the EIB to support BNZ's roll-out of 1.7 GW of solar photovoltaic power in Southern Europe by the end of 2026. BNZ is an Independent Power Producer (IPP) that develops, builds, and operates solar photovoltaic projects and is owned by Nuveen Infrastructure.
The 17 new photovoltaic plants will provide green energy equivalent to the average annual energy consumption of more than 390 000 households and will mostly be located in cohesion regions, where per capita income is lower than the EU average, underling the EIB's commitment to economic growth and convergence among regions.
The financing operation contributes to EIB's climate action goals and reinforces EIB's position as the ‘The Climate Bank', a top priority for the EIB Group as included in its 2024-2027 Strategic Roadmap.
“This new investment is a clear example of how the EIB is fostering the energy transition, contributing to a more sustainable energy model, and leveraging the great potential of southern European countries for renewable energy,” said EIB Director of Equity, Growth Capital and Project Finance Alessandro Izzo. “The project will boost energy supply security and contribute to the strategic autonomy of Europe by reducing dependency on fossil fuel imports.”
The project supports the decarbonization objectives of the European Green Deal and is also part of the EIB's action planto support REPowerEU, the EU plan designed to end dependence on fossil fuel imports by increasing energy efficiency and ramping up production from renewables.
The project is supported by InvestEU, the EU flagship program to mobilize more than €372 billion of additional investment from public and private sector funds to support EU policy goals in the period 2021-2027.
BNZ Managing Director Luis Selva said: “The new phase marked by the closing of our financing demonstrates the solidity of our business and the ambitious nature of our plans and opens a new scenario for us to explore technological and geographical diversity, and to grow in volume and team headcount, to become one of the largest IPPs in the market. We want to continue building a cleaner and more sustainable future, and the support from such significant financial institutions as the EIB shows a shared long-term vision to achieve a better world.”
Global Head of Clean Energy Investments at Nuveen Infrastructure Francesco Cacciabue said: “This significant investment marks a pivotal step towards advancing sustainable energy infrastructure in Southern Europe. This initiative will significantly contribute to the renewable energy goals of Spain, Italy, and Portugal and the broader European Union's climate objectives.”